(β) is about relative risk, it is a statistical measure that provides a historical relationship between investment vehicles, portfolios and a market index, using the S&P500. For example, a portfolio with a Beta 1.2 will likely go up 20% more than the market when the market goes up, but also it means that the portfolio will likely go down 20% more than the market when the market goes down. Lower Betas have less upside and downside volatility.
Why Use MYOBETA?
To determine what 401k fund you should pick.
To determine what risk you need to take for a major purchase.
To determine how long your retirement nest egg will last and what can be taken out of it every year, given the risk level of the investments you have selected.
Any other goal where you wish to grow, put in or take money out every year.
MYOBETA helps address several variables if you own stock, mutual funds, have an IRA, 401k, or 403b, you are faced with a series of seemingly unanswerable questions about the risk you are taking with your money:
What is my emotional capacity for risk?
How will I know what risk level is right for me?
Won’t my risk tolerance change over time and with events?
How will I know to make adjustments to my portfolio?
Is my description of risk clearly understood by me and my advisors?
Mind Your Own Beta is available for both the iPhone and iPad. MYOBeta will provide a real number (Beta) which can be compared to your current investments or help you in selecting your investments, such as which 401k fund or stocks are appropriate for you. It can also be used to determine how much is needed to provide your desired retirement income or how much needs to be invested to provide for your children’s educational needs. Virtually all investments have a Beta, so you can match your Beta with the one that is closest to yours. Your results are stored and may be reviewed or sent via email to you or your advisor. You can use the App for two people with an unlimited number of different analysis scenarios. Additional people (Users or clients) can be added with an In-App purchase so Advisors can use the App for all their clients. This allows for advisors and brokers the ability to store all their clients. Be sure to fully read the disclaimer before doing an analysis. Mind Your Own Beta was developed from a concept by a Senior Portfolio Manager at a Global Financial Services Firm with 40 years of Financial industry experience.
The world’s big dealers quietly started work on a new swaps market utility last year, dubbed Project Colin. The aim was to control the vast collateral flows arising from incoming bilateral margining rules, but the consortium has since fallen apart, and a coalition of middleware and back-office firms have stepped into the breach
Failing to adopt a scaling methodology when including external data in operational risk calculations could lead to a distortion of capital charges and possibly systemic risk in a banking system relying on consortium data. Here, Roberto Torresetti and Claudio Nordio propose a scaling methodology to help overcome these shortcomings and compare the outcome with respect to alternative methodologies on a real operational data sample
Swiss bank regulators earned a reputation for conservatism – even among their peers – by quickly adopting a reinforced version of Basel III. But that was then, and Switzerland now needs to catch up on some issues, notably the leverage ratio, says Mark Branson, chief executive of the country’s prudential regulator
Day-ahead power market coupling has been in operation across the North West Europe region for over a year. To what extent has it helped prices converge, and what are the next steps aimed at bringing Europe’s electricity markets closer together?
Hampered by increasingly complex regulations, as well as the cost and inertia of inefficient legacy systems, banks are facing growing competition from innovative non-bank organisations. Unless they start to confront the mission-critical importance of transforming their technology, could they face death by a thousand cuts?
French equity derivatives specialist Horizon Software is concerned about burdensome EU regulation choking liquidity in its core stock options market – but, says Sylvain Thieullent, its chief executive of electronic trading, the firm has learnt the importance of tailoring its approach to suit a local market as a result
The UK regulator has proposed five ‘controlled function holders’ for insurers without including a chief investment officer. But the role is too important to overlook, says Scott Eason of Barnett Waddingham